Practicing Success
Which of the following option influences the "Keynesian Investment Multiplier"? |
Expenditure level Marginal efficiency of capital Marginal propensity to consume Income level |
Marginal propensity to consume |
The formulae for Keynesian Investment Multiplier is: k = \(\frac{1 }{\text 1 - MPC }\) Thus, any change in value of MPC would cause an influence on "Investment multiplier". |